South Africa to Receive $8.5b to Phase Out Coal

Germany, along with the U.S. and several European countries, have pledged $8.5 billion of aid for South Africa to phase out its coal use in an effort to make a model for other countries.

South Africa announced at the Glasgow climate summit that it has agreed to let Germany, the U.K., the U.S., France and the EU support the African country in its energy transition by phasing out coal.

The German environment ministry at the summit said that besides a contribution of $1.15 billion, it will also provide expertise for improving its investment framework for renewable energy.

The partnership would be “a major test of whether wealthy nations can help developing countries embark on a just transition away from coal,” said Jesse Burton, an energy policy researcher at the University of Cape Town.

South Africa, Africa’s top emitter of greenhouse gases, is heavily reliant on coal and has pledged to reduce its carbon emissions by 2030. However, the country is struggling with its energy transition with a domestic coal shortage causing electricity blackouts across the country.

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